Bausch + Lomb Corporation (BLCO) AI Stock Analysis

• Market Cap: $5.13B
• Dividend Yield: N/A
• Average Volume (3M): 549.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: 8.81%
• EPS Growth: 40.43%
• Country: US
• Employees: 13,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.07
• Shares Outstanding: 353,865,780
• 10 Day Avg. Volume: 616,874
• 30 Day Avg. Volume: 549,361
• PEG Ratio: -0.93
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 1.33
• P/FCF Ratio: -107.69
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 1.91
• Enterprise Value/Gross Profit: 3.21
• Enterprise Value/Ebitda: 26.66
• 1Y Price Target: $14.50
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 49 Neutral
• Price Target: $14.50 ▲(0.00% Upside)

Bausch + Lomb Corporation's overall stock score is primarily impacted by its mixed financial performance and challenging valuation. While there are positive aspects such as revenue growth and increased guidance, persistent profitability issues and weak cash flow generation weigh heavily. Technical analysis suggests a neutral to slightly bearish trend, and the earnings call sentiment is balanced, reflecting both achievements and challenges.

Positive Factors

Revenue Growth

Raising revenue guidance indicates strong market demand and effective business strategies, supporting long-term growth prospects.

Product Innovation

Successful clinical trials of new products like enVista Envy demonstrate innovation and can enhance competitive positioning in the eye care market.

Debt Management

Refinancing debt with extended maturities improves financial stability and reduces near-term liquidity risks, supporting long-term operations.

Negative Factors

Profitability Issues

Negative profit margins indicate ongoing profitability challenges, which can hinder reinvestment and growth opportunities.

Cash Flow Challenges

Weak cash flow generation limits the company's ability to fund operations and invest in growth, impacting long-term sustainability.

U.S. Generics Decline

A significant decline in the U.S. Generics segment can reduce revenue diversity and impact overall financial performance.

Bausch + Lomb Corporation Business Overview & Revenue Model

Company Description

Bausch + Lomb Corporation operates as an eye health company worldwide. It operates through three segments: Vision Care/Consumer Health Care, Ophthalmic Pharmaceuticals, and Surgical. The Vision Care/Consumer Health Care segment provides contact lens that covers the spectrum of wearing modalities, including daily disposable and frequently replaced contact lenses; and contact lens care products, over-the-counter eye drops, eye vitamins, and mineral supplements that address various conditions comprising eye allergies, conjunctivitis, and dry eye. The Ophthalmic Pharmaceuticals segment offers proprietary and generic pharmaceutical products for post-operative treatments, as well as for the treatment of eye conditions, such as glaucoma, ocular hypertension, and retinal diseases; and contact lenses for therapeutic use. The Surgical segment provides tools and technologies for the treatment of cataracts, and vitreous and retinal eye conditions; and intraocular lenses and delivery systems, phacoemulsification equipment, and other surgical instruments and devices. The company was founded in 1853 and is headquartered in Vaughan, Canada.

How the Company Makes Money

Bausch + Lomb makes money through a diversified revenue model centered around its key product categories. The Vision Care segment generates revenue from the sale of contact lenses and lens care products, catering to both individual consumers and eye care professionals. The Pharmaceuticals segment includes prescription and over-the-counter products for the treatment of various eye conditions, contributing significantly to the company's earnings. The Surgical segment derives its income from the sale of ophthalmic surgical devices and instruments, which are used in procedures such as cataract surgery. Bausch + Lomb's revenue streams are supported by its global distribution network and strategic partnerships with healthcare providers and institutions, enabling it to maintain a strong presence in the eye health market.

Bausch + Lomb Corporation Financial Statement Overview

Summary

Bausch + Lomb Corporation demonstrates mixed financial performance. While revenue growth is positive, persistent net losses and negative profit margins indicate significant profitability challenges. The balance sheet is stable with moderate leverage, but negative returns on equity and weak cash flow generation highlight the need for strategic improvements.

Income Statement

The income statement shows a mixed performance for Bausch + Lomb Corporation. Over the TTM period, gross profit margin stands at 70.4%, indicating effective cost management. However, the net profit margin is negative at -11.78%, reflecting significant losses. Revenue growth is positive at 2.25%, but profitability remains pressured with negative EBIT and EBITDA margins of 0.74% and 5.16%, respectively. The company needs to address its declining profitability despite revenue growth.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.77, indicating moderate leverage. Return on equity is negative at -8.93% due to net losses, and the equity ratio is solid at 46.55%. The company has managed to maintain a balanced structure despite increasing liabilities, but negative returns on equity highlight a need for improved profitability.

Cash Flow

Cash flow analysis reveals challenges in cash generation. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is -0.32, suggesting insufficient cash flow relative to net losses. The free cash flow to net income ratio is negative, indicating inefficiencies in turning earnings into cash flow. Improvement in operational efficiency is crucial to enhance cash flow performance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.89B	4.77B	4.15B	3.77B	3.77B	3.41B
Gross Profit	2.92B	2.92B	2.50B	2.25B	2.30B	2.13B
EBITDA	351.00M	614.00M	512.00M	599.00M	762.00M	739.00M
Net Income	-401.00M	-317.00M	-260.00M	15.00M	182.00M	-17.00M
Balance Sheet
Total Assets	13.83B	13.47B	13.44B	11.14B	10.82B	11.27B
Cash, Cash Equivalents and Short-Term Investments	272.00M	305.00M	331.00M	354.00M	174.00M	238.00M
Total Debt	4.96B	4.78B	4.56B	2.44B	112.00M	101.00M
Total Liabilities	7.32B	6.92B	6.52B	4.04B	1.42B	1.28B
Stockholders Equity	6.44B	6.47B	6.85B	7.03B	9.33B	9.92B
Cash Flow
Free Cash Flow	-165.00M	-59.00M	-198.00M	170.00M	664.00M	263.00M
Operating Cash Flow	186.00M	232.00M	-17.00M	345.00M	873.00M	522.00M
Investing Cash Flow	-487.00M	-412.00M	-2.11B	-215.00M	-214.00M	-256.00M
Financing Cash Flow	247.00M	178.00M	2.08B	81.00M	-712.00M	-232.00M

Bausch + Lomb Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLCO, the sentiment is Negative. The current price of 14.5 is below the 20-day moving average (MA) of 15.00, below the 50-day MA of 14.51, and below the 200-day MA of 14.60, indicating a bearish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 44.73 is Neutral, neither overbought nor oversold. The STOCH value of 19.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BLCO.

Bausch + Lomb Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMSI	79 Outperform	$4.75B	40.75	8.01%	―	10.14%	0.04%
COO	67 Neutral	$13.43B	33.26	4.88%	―	6.35%	12.94%
STVN	66 Neutral	$7.00B	47.93	9.63%	0.24%	5.95%	7.73%
RGEN	56 Neutral	$7.07B	-503.04	-1.29%	―	8.73%	-245.82%
XRAY	54 Neutral	$2.49B	-2.63	-46.86%	5.12%	-5.78%	-445.83%
BLCO	49 Neutral	$5.13B	―	-4.22%	―	8.81%	40.43%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Bausch + Lomb Corporation Corporate Events

Bausch + Lomb Ends Agreement with Icahn Group

On August 14, 2025, Bausch + Lomb Corporation announced the termination of the Amended and Restated Director Appointment and Nomination Agreement with Carl C. Icahn and his affiliates, following the Icahn Group’s reduced stake in Bausch Health Companies Inc. Consequently, Brett Icahn and Gary Hu resigned from the company’s board of directors. The resignations were not due to any disagreements with the company, and Bausch + Lomb’s CEO expressed gratitude for their contributions over the past three years.

Bausch + Lomb Amends CEO Employment Agreement

On July 21, 2025, Bausch + Lomb Corporation amended the employment agreement with CEO Brenton L. Saunders, limiting his severance rights related to the company’s spin-off from Bausch Health Companies Inc. Additionally, the company adjusted the terms of Saunders’ performance stock units, setting a new vesting schedule and performance targets to be achieved by February 23, 2029, which could impact the company’s financial incentives and executive compensation strategy.

Bausch + Lomb Expands Note Offering to €675 Million

On June 18, 2025, Bausch + Lomb Corporation announced an increase in its offering of senior secured floating rate notes to €675 million, up from €600 million, with the proceeds intended to refinance existing loans and credit facilities. The company is also seeking to establish a $2.325 billion new term B loan facility and a new $800 million revolving credit facility, with both expected to close on June 26, 2025, to further strengthen its financial position.

Bausch + Lomb Launches €600 Million Notes Offering

On June 10, 2025, Bausch + Lomb Corporation announced the launch of a €600 million senior secured floating rate notes offering by its subsidiaries, alongside a partial refinancing of its credit agreement. The company plans to use the proceeds to repay existing borrowings and refinance outstanding loans, with the transactions subject to market conditions. The notes will be guaranteed by Bausch + Lomb and secured by first priority liens, though there is no assurance of successful completion.

Bausch + Lomb Launches €600M Notes Offering

On June 10, 2025, Bausch + Lomb Corporation announced the launch of a €600 million senior secured floating rate notes offering by its subsidiaries, alongside a partial refinancing of its credit agreement. The company aims to secure a $2.2 billion new term B loan facility and a new $800 million revolving credit facility to refinance existing loans and support general corporate purposes. The transactions, subject to market conditions, are designed to strengthen the company’s financial structure but are not guaranteed to be completed as planned.

Bausch + Lomb Launches €600 Million Notes Offering

On June 10, 2025, Bausch + Lomb Corporation announced the launch of a €600 million senior secured floating rate notes offering by its subsidiaries, alongside a partial refinancing of its credit agreement. The company plans to use the proceeds to repay existing borrowings and refinance outstanding loans, with the transactions subject to market conditions. The notes will be guaranteed by Bausch + Lomb and secured by first priority liens, though there is no assurance of successful completion.